By Ransdell Pierson
June 24 Pfizer Inc on Monday said it
would complete the spinoff of its Zoetis Inc animal
health business after investors offered to trade their Pfizer
shares for the company's remaining majority stake in the unit.
The drugmaker said it would distribute all its Zoetis Class
A common stock, representing more than 80 percent of the animal
health business, to investors who tendered Pfizer stock.
Pfizer said it no longer would hold any ownership interest
The exchange offer of 0.9898 Zoetis share for each Pfizer
share expired on Friday. Pfizer will swap almost 401 million
Zoetis shares for more than 405 million Pfizer shares.
Pfizer said the exchange offer was oversubscribed, with
almost 1.7 billion Pfizer shares tendered. It said it expects to
complete the exchange on Wednesday.
With Zoetis fully divested, Pfizer said it expects full-year
earnings, excluding special items, of $2.10 to $2.20 per share.
It previously forecast $2.14 to $2.24.
It projected 2013 revenue of $50.8 billion to $52.8 billion,
down from an earlier forecast of $55.3 billion to $57.3 billion.
It said its prior 2013 forecasts included revenue and
earnings from its 80 percent stake in Zoetis.
Pfizer said the Zoetis spinoff will boost its earnings per
share in 2014 because all 405 million Pfizer shares it is
receiving for its Zoetis stake are considered retired.
Zoetis, in a separate statement, said it had named Michael
McCallister, a company board member and former chief executive
of managed care company Humana Inc, as its non-executive
board chairman. He will succeed Frank D'Amelio, Pfizer's chief
financial officer. D'Amelio will remain a member of the Zoetis
Pfizer in February sold about 20 percent of its animal
health business in an initial public offering of Zoetis that
raised $2.2 billion.
Pfizer continues to unload its non-pharmaceuticals
businesses to focus on its core prescription drugs business,
which has far higher profit margins.
In April 2012 Pfizer sold its infant nutrition business to
Nestle SA for $11.9 billion.
The biggest U.S. drugmaker is also considering selling off
its wide array of generic prescription drugs. In that event, it
would keep its branded patent-protected medicines.
Shares of Pfizer were down 2.5 percent at $27.74 near midday
on the New York Stock Exchange, amid a broad downturn in the
stock market. Zoetis shares were down 3.4 percent.